Getting the Most Out of Procurement Software

Procurement software increases production, builds better supplier relationships, increases internal collaboration, and improves your supply chain process.

Getting the Most Out of Procurement Software

Procurement software takes the processes around purchasing goods and services and centralizes them into a single system. Using procurement software saves employees valuable time by automating manual, day-to-day purchasing processes like managing vendors and contracts, generating quote requests and purchase requisitions, creating purchase orders, routing purchase orders for approvals, executing the ordering process, matching invoices to materials received and purchase orders, and paying invoices electronically.
Procurement software is an excellent way to increase production, build better supplier relationships, increase internal collaboration, and improve the entirety of your supply chain process.

Cognitive Procurement

Enterprises buy things all the time to run their businesses. While policies do exist to govern spending and prevent fraud, the reality poses many challenges.

The constantly evolving list of suppliers, items, and prices coupled with the increasing empowerment of buyers presents infinite options for procuring an item. Traditional procurement software slice and dice data to look for known problems based on predefined rules, but how do you hunt for problems that you don’t even know exist?
Cognitive Procurement, powered by ignio, addresses this core problem by combining AI and machine learning techniques to discover actionable insights without any predefined rules. Cognitive Procurement allows you to discover hidden savings opportunities by analyzing procurement behavior and challenging undesirable transactions with evidence. For example, it can automatically discover and highlight recurring patterns like a combination of plant, buyer, item, and supplier driving price variance. It can also detect purchase orders that fit such patterns in real-time and flag them as maverick transactions needing attention in a command center.

Cognitive Procurement detects patterns that lead to exceptions or fallouts that increase transaction processing costs. It also detects attempts to game the system. For example, it can flag employees who demonstrate a recurring pattern of claiming expenses such that they do not require approvals. The outcome is improved spend savings and optimized transaction costs, resulting in a predictive, proactive, and compliant procurement function.

Are you ready to leap into the future with Cognitive Procurement powered by ignio? Request a demo here.

Four Procurement Software Trends

  • Cloud-Based Software

Many organizations already use the cloud to some degree today, yet a cloud-based procurement software should allow you to integrate with the software that you currently use and don’t want to lose.

  • Big Data?

Digital procurement software allows you to evaluate your suppliers, decide on your budgets, run cost analysis, and essentially manage your entire procurement process.

  • Blockchain

Blockchain is a digital currency system that has also improved data security. Only time will tell if this has staying power.

  • The Human Factor

Procurement software enhances collaboration and transparency which essentially builds better relationships internally and with your suppliers.